Head-To-Head Survey: The9 (NASDAQ:NCTY) vs. Zillow Group (NASDAQ:ZG)

The9 (NASDAQ:NCTY) and Zillow Group (NASDAQ:ZG) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Volatility and Risk

The9 has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of The9 shares are owned by institutional investors. Comparatively, 24.3% of Zillow Group shares are owned by institutional investors. 30.8% of The9 shares are owned by company insiders. Comparatively, 20.9% of Zillow Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares The9 and Zillow Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The9 N/A N/A N/A
Zillow Group -13.49% -5.12% -3.77%

Analyst Recommendations

This is a summary of current ratings and price targets for The9 and Zillow Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The9 0 0 0 0 N/A
Zillow Group 3 6 8 0 2.29

Zillow Group has a consensus target price of $46.65, indicating a potential upside of 36.43%. Given Zillow Group’s higher probable upside, analysts plainly believe Zillow Group is more favorable than The9.

Valuation and Earnings

This table compares The9 and Zillow Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The9 $2.54 million 13.90 -$31.58 million N/A N/A
Zillow Group $1.33 billion 5.30 -$119.86 million ($0.26) -131.50

The9 has higher earnings, but lower revenue than Zillow Group.

Summary

The9 beats Zillow Group on 7 of the 11 factors compared between the two stocks.

The9 Company Profile

The9 Limited, together with its subsidiaries, operates as an online game developer and operator in the People's Republic of China. The company offers online games, including massively multiplayer online games, mobile games, Web games, and TV games. It also provides training services, such as smartphone application programming training services to college students. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was founded in 1999 and is headquartered in Shanghai, the People's Republic of China.

Zillow Group Company Profile

Zillow Group, Inc. operates real estate and home-related brands on mobile and the Web in the United States. The company offers a portfolio of brands and products to empowering consumers with unparalleled data, inspiration, and knowledge around homes and connecting them with real estate professionals. Its brands focus on various stages of the home lifecycle, including renting, buying, selling, and financing. The company's portfolio of consumer brands comprise real estate and rental marketplaces, such as Zillow, Trulia, Mortgage Lenders of America, StreetEasy, HotPads, Naked Apartments, RealEstate.com, and Out East. It also provides a suite of marketing software and technology solutions; and owns and operates various business brands for real estate, rental, and mortgage professionals comprising Mortech, dotloop, Bridge Interactive, and New Home Feed. In addition, the company offers advertising services. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.

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